1. Sam took a 30-year mortgage for $500,000 at an annual interest rate of 9%....
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1. Sam took a 30-year mortgage for $500,000 at an annual interest rate of 9%.
a. If, after 10 years, interest rates drop and you want to refinance, how much principal is to be paid on your mortgage? b. If you can refinance your mortgage for the remaining 20 years at an annual interest rate of 7.2%, what will your monthly payments be? c. How much will you save in interest in 20 years by paying the lower rate?
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